Modesto Woman Pleads Guilty to Embezzlement-Related Charges
Former Employer Lost $1.6 Million

FRESNO, CA—Acting United States Attorney Lawrence G. Brown announced today that LISA SHAE ALLEN, 37, of Modesto, pleaded guilty to 15 counts of mail fraud and admitted that her conduct resulted in a $1.6 million loss to her former employer.

This case is the product of an investigation by the FBI and U.S. Postal Inspection Service with assistance from the Stanislaus County District Attorney’s Office.

According to Assistant United States Attorneys Stanley A. Boone and Ian Garriques, who are prosecuting the case, ALLEN was the former controller for G. Hedgecock Inc. (GHI), a grading and paving company located in Modesto. Beginning in January 2002, and continuing to March 2007, ALLEN engaged in a fraudulent scheme defrauding GHI of over $1.6 million. Using an elaborate method to conceal her embezzlement from her employer, she was able to avoid audit detections of the company. She then spent the money for her own personal use.

ALLEN is scheduled to be sentenced by Chief Judge Anthony W. Ishii on August 31, 2009, at 9 a.m. The maximum sentence ALLEN faces is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.